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EU’s AI Rulebook is Coming for Your Operations—Here’s What it Means
Over the past two years, energy companies have moved quickly to embed artificial intelligence (AI) across their operations, including predictive maintenance on compressor stations, automated leak detection on pipelines, reservoir modeling and offshore safety monitoring.
In many cases, it is already delivering measurable operational value. But a regulatory framework born in Brussels is about to change the legal exposure of any operator with exposure to the European Union (EU) market.
The EU AI Act, which entered into force in August 2024, is the world’s first comprehensive legal framework governing AI. It carries penalties of up to 35 million euros or 7% of global annual turnover, whichever is higher, for the most serious violations. For energy companies, the act’s risk-based classification system means that many AI systems already embedded in daily operations could trigger significant compliance obligations.
The Supreme Court's Decision in 'Hikma v. Amarin' and What it May Mean for Patent Enforcement Strategy
Robert Maier, Daniel Chung (Summer Associate)
On June 4, 2026, the U.S. Supreme Court issued a unanimous decision in Hikma Pharmaceuticals USA Inc v. Amarin Pharma, Inc., No. 24-889 (Hikma v. Amarin) that may reshape the landscape for generic manufacturers marketing products under so-called "skinny labels"- and beyond that, which may have broader implications for induced infringement claims in patent cases of all kinds. The decision provides additional clarity and context regarding the line between lawful product marketing and actionable inducement, with implications that extend well beyond the pharmaceutical industry to any context in which a product is capable of both patented and unpatented uses.
Our Take on AI: August 2026
EU AI Act Timeline Reset: The Council of the European Union has given final approval to a targeted package of amendments to the EU AI Act as part of the "Omnibus VII" simplification agenda, moving the Act from framework-setting into implementation. The headline change is timing: key obligations for high-risk AI systems are deferred, with new application dates of December 2027 for stand-alone systems and August 2028 for systems integrated into products. Notably for content-driven businesses, the amendments cut the other direction on disclosure — transparency deadlines for AI-generated content are accelerated, and regulatory sandbox timelines are adjusted to align with implementation realities. The risk-based architecture remains intact, making this a recalibration rather than a rollback. Samir Bhavsar writes more about this development here: "EU AI Act Reset: More Time, Same Compliance Reality.”
July 2026 Intellectual Property Report Recap
In case you missed it, here is a link to our July 2026 Intellectual Property Report.
Baker Botts Intellectual Property Department Update
Kathleen Fox Murphy has joined Baker Botts as an Intellectual Property partner in London. During more than 25 years in practice, she has represented life sciences and technology companies in patent disputes before the UK High Court, Court of Appeal and Supreme Court and has helped clients navigate proceedings before the Unified Patent Court. Her work includes pharmaceutical, biotechnology, medical device and telecommunications disputes, as well as interim injunctions and competition law issues involving standard essential patents and FRAND licensing. Kathleen is another point of connection between Baker Botts' US intellectual property practice and patent proceedings in the UK and Europe.
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